The US inflation data is out!
US Monthly PPI will be announced on Friday at 15:30 MT time.
GBP: more stimulus
The stimulus
GBP/USD has risen from 1.2940 to above 1.3000 in a strong bullish spike just now. That’s because the Bank of England expanded the quantitative easing beyond expectations. Specifically, the bong-buying program is increased by 150 billion pounds. The committee unanimously voted in favor of this measure with the strategic objective to keep the interest rate at 0.1%. The process of buying itself will take one year starting in January.
For the GBP, that’s definitely good news as the entire country is now in a partial lockdown, Brexit is moving slow, and the British economy is in an obvious slump.
The overview
In the meantime, the GBP keeps moving within a larger sideways channel between 1.2890 and 1.3070. The core of this channel is contained within narrower band 1.2940-1.3000 where 1.3000 is the key level – and the GBP has just stepped over it. Now, you may take the upside of the larger channel of 1.3070 as the primary target for bulls.
Similar
Will the pound keep standing?
UK Preliminary Quarterly GDP is out on Thursday at 09:00 MT time.
Will the RBNZ support the kiwi?
The New Zealand interest rate is announced on Wednesday at 03:00 MT time.
Latest news
All eyes on AUD
Australian Private Capital Expenditure will be out on Thursday at 2:30 MT time!
Market is crazy after Biden’s transition
Oil jumped to March high, stocks are heading to record highs, while the US dollar is on the back foot.
Wednesday is full of US reports
News geeks get ready for the chain of US reports, which starts at 15:30 MT time on November 25!
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